When buying a property considering the importance of it’s location has never been so important. Buying in a good location, you’ll have the flexibility in the future to modify or renovate the property. However buying a property in an inferior location can’t obviously be easily picked up and moved to a better area.
That’s why you should consider the location carefully. Here are some of the most important things to look for.
Understand the neighbourhood
When conducting your research, learn more about the neighborhood. Take a better understanding to the community. Observing the daily and nightly activity will help learn the lifestyles held within the location. If the neighbourhood is filled with families or young professionals, it will help you appreciate the type of properties in demand. Owning a property within close proximity to parks, playgrounds and shops may be highly favoured with families.
If you’re looking in location that attracts university students but you would prefer to rent to a quiet couple, then perhaps this location isn’t right for you.
Furthermore, if the suburb you’re wanting to buy is well maintained by the local council and it’s committed to the community, you may find this a safe and happy environment.
What’s the crime rate?
When investing, buying a property in a location experiencing higher levels of crime is worth reviewing. This may cause vacancies if the home is regularly burgled. The property may also be damaged and insurance premiums may reduce the net rental income you anticipated.
Not all locations are the same, but prior to buying you may want to consider improving the security measures. Installing an Alarm, cameras and security doors are just a few things that may prevent burglaries from occurring.
Access to infrastructure
With an increasing population, having good infrastructure plays a large contribution to sourcing a good location. Having public transport options such as trains, trams and buses are highly favoured by potential tenants. Many tenants will pay a premium to have the flexibility to commute to the city promptly.
Metropolitan Melbourne holds a dense population, so travel time from points A to B are really highly desired by tenants and landlords.
Schools and education
Families will also pay a premium to live within a school zone. Highly reputable schools can be difficult to attend. Occupying a home in a catchment can be very appealing. According to REIV research, homes located within some of Melbourne’s best public school zones have asking prices in excess of $100,000.
Future infrastructure and amenities
The suburb may be well established but is it sustainable? Will the location continue to receive further improvements by local councils and communities? As the population grows, town planning needs to keep up. Will there be freeways, new shopping centers and school improvements? All of these changes can create changes and should be investigated before buying.
Population trends
Australia, particularly Melbourne is witnessing a strong population rise. As the population increases, its important to acknowledge what areas are higher than others. These trends can also demonstrate potential changes in supply/demand. The shorter supply and higher demand have historically shown upward pressures on prices, meaning capital growth.
If the supply outweighs demand, this can have a negative result on prices. While vacancy rates will also help you understand the rental demand too.
In summary
At Crest Property Investments, we ultimately learn what our buyer is looking for, help teach them the property market and then source the right property to suit. There are many important factors to consider. Location plays a large contribution, but there are many other factors to review when assessing location. If you you’d like to learn more about location and how it matters, please don’t hesitate to contact us. We would be delighted to help you make the right decision.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
November 2020
